U.S. Airfares Jump 18% in May as Spirit Shutdown Shrinks Capacity
Updated
Updated · CBS New York · Jul 9
U.S. Airfares Jump 18% in May as Spirit Shutdown Shrinks Capacity
3 articles · Updated · CBS New York · Jul 9
Summary
Average plane tickets booked through travel agencies cost 18% more in May than a year earlier, even as jet fuel prices began easing.
Strong travel demand and Spirit Airlines' May shutdown have kept supply tight, giving carriers little reason to cut fares despite lower fuel costs.
May passenger trip volumes were unchanged from a year earlier, showing higher prices have not yet dented demand.
Jet fuel remains airlines' second-biggest expense after labor, but analysts say fares often fall slowly after cost spikes — a 'rockets and feathers' pattern that can lift profits.
Spirit's collapse also removed a major ultra-low-cost competitor, and experts say travelers' post-pandemic shift toward premium seats makes a quick return of bare-bones fare pressure unlikely.